1. LO 1.1Accounting is sometimes called the “language of _____.”
2.
LO 1.2Financial accounting information ________.
- should be incomplete in order to confuse competitors
- should be prepared differently by each company
- provides investors guarantees about the future
- summarizes what has already occurred
3.
LO 1.2External users of financial accounting information include all of the following except ________.
- lenders such as bankers
- governmental agencies such as the IRS
- employees of a business
- potential investors
4.
LO 1.2Which of the following groups would have access to managerial accounting information?
- bankers
- investors
- competitors of the business
- managers
5.
LO 1.2All of the following are examples of managerial accounting activities except ________.
- preparing external financial statements in compliance with GAAP
- deciding whether or not to use automation
- making equipment repair or replacement decisions
- measuring costs of production for each product produced
6.
LO 1.3Which of the following is not true?
- Organizations share a common purpose or mission.
- Organizations have inflows and outflows of resources.
- Organizations add value to society.
- Organizations need accounting information.
7.
LO 1.3The primary purpose of what type of business is to serve a particular need in the community?
- for-profit
- not-for-profit
- manufacturing
- retail
8.
LO 1.3Which of the following is not an example of a retailer?
- electronics store
- grocery store
- car dealership
- computer manufacturer
- jewelry store
9.
LO 1.3A governmental agency can best be described by which of the following statements?
- has a primary purpose of making a profit
- has a primary purpose of using taxpayer funds to provide services
- produces goods for sale to the public
- has regular shareholder meetings
10.
LO 1.3Which of the following is likely not a type of not-for-profit entity?
- public library
- community foundation
- university
- local movie theater
11.
LO 1.4Which of the following is not considered a stakeholder of an organization?
- creditors
- lenders
- employees
- community residents
- a business in another industry
12.
LO 1.4Stockholders can best be defined as which of the following?
- investors who lend money to a business for a short period of time
- investors who lend money to a business for a long period of time
- investors who purchase an ownership in the business
- analysts who rate the financial performance of the business
13.
LO 1.4Which of the following sell stock on an organized stock exchange such as the New York Stock Exchange?
- publicly traded companies
- not-for-profit businesses
- governmental agencies
- privately held companies
- government-sponsored entities
14.
LO 1.4All of the following are sustainable methods businesses can use to raise capital (funding) except for ________.
- borrowing from lenders
- selling ownership shares
- profitable operations
- tax refunds
15.
LO 1.4The accounting information of a privately held company is generally available to all of the following except for ________.
- governmental agencies
- investors
- creditors and lenders
- competitors
16.
LO 1.5Which of the following skills/attributes is not a primary skill for accountants to possess?
- written communication
- verbal communication
- ability to work independently
- analytical thinking
- extensive computer programing background
17.
LO 1.5Which of the following is typically required for entry-level positions in the accounting profession?
- bachelor’s degree
- master’s degree
- Certified Public Accountant (CPA)
- Certified Management Accountant (CMA)
- only a high school diploma
18.
LO 1.5Typical accounting tasks include all of the following tasks except ________.
- auditing
- recording and tracking costs
- tax compliance and planning
- consulting
- purchasing direct materials
19.
LO 1.5What type of organization primarily offers tax compliance, auditing, and consulting services?
- corporations
- public accounting firms
- governmental entities
- universities
20.
LO 1.5Most states require 150 semester hours of college credit for which professional certification?
- Certified Management Accountant (CMA)
- Certified Internal Auditor (CIA)
- Certified Public Accountant (CPA)
- Certified Financial Planner (CFP)